As you can see there is a quite a few things to consider when determining what a lot is worth.

Zoning is determined by the city and county.

So the determination and reporting of value as well as handling debt and cash is your challenge when not using a QI and doing the delayed 3rd party exchange.

You don't deduct that again to determine taxes. im not getting how you can buy something for $200k, sell it for $228k, and have a $158k profit.

Originally posted by @Mauricio Arroyo:@Michael Plante no I pay my insurance and taxes separate every year.The bank adds that to the monthly payment to determine how much you qualify for maybe your total per money mortgage, real estate tax and insurance is why? 

While you are legally correct, attitudes in the court system, and the particular judge, will determine what happens.

Banks will follow the Fair Market Rents determined by an appraiser.

The allocation for primary/investment side will determine the allocation of profit for each side. 

@Jaime Rossini,  there is a lot of info missing in your post to allow a full assessment but here is how I would look at the situation if I was to buy with a view to house hacking (live in the vacant unit for a couple of years).Regarding the purchase, this is how I would determine how much gap financing I would need.Purchase Price + Closing Costs for purchase and new mortgage + Cost to Upgrade vacant unit - How much can I afford to invest as my own initial equity?

So it sounds like if we go month-to-month after our lease is up in July, the landlord can raise rent by up to 5%+CPI OR 10% (how do they determine which though?)